British Prime Minister, Rishi Sunak, and his Chancellor of the Echiquier, Jeremy Hunt, presented a budget on Thursday which plans 55 billion pounds sterling of savings over the next five years.
by Cécile Ducourieux (London, correspondent)
An unprecedented budgetary screw on the background of dark economic prospects: Thursday, November 17, the British Prime Minister, Rishi Sunak, and his Chancellor of the Echiquier, Jeremy Hunt, presented an “fall budget” to taste Particularly bitter for the British. Mr. Hunt has certainly avoided talking about austerity, but with 55 billion pounds sterling (63 billion euros) of savings over the next five years, more taxes and restricted public spending, the potion is difficult to swallow for individuals and businesses. It is all the more so since the country enters a recession and, in believing the dismissals of the Office for Budget Responsibility – the National Agency for Budget Forecasts -, British households will be prevented like never before For six decades: their income will decrease by 7 % over the next two years, eradicating all their earnings from the past eight years.
Why does the United Kingdom choose such a remedy, while other European economies rather try to stimulate plans to counter a conjuncture of war related to the war in Ukraine and to the consequences of the pandemic? Let’s operate a little back: just two months ago, the British government announced, as part of a badly named “Mini-Budget”, huge tax gifts for the wealthiest households (around 45 billion Sterling tax books), funded by public debt. The markets have brutally tanned: the pound slipped in front of the dollar, the cost of British public debt flew away, as well as real estate loan interests for individuals.
“Rescue operation” of the economy
The Chancellor of Echiquier Kwasi Kwarteng was replaced in mid-October by Jeremy Hunt, 56, a former health minister of Theresa May, renowned for his calm and seriousness. Prime Minister Liz Truss did not resist much longer: she resigned on October 20 and the very pragmatic Rishi Sunak, 42, the ex-chancellor of the Echiquier de Boris Johnson, succeeded him five days later at Downing Street. Since then, almost all measures of the “mini-budget” have been canceled, and the Sunak-Hunt tandem has promised to “correct the errors” of their predecessors to restore the reputation of serious budgetary of the country. Priority is now given to financial stability, reducing the share of debt on national domestic product and the fight against inflation (it reached 11.1 % over a year in October).
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